HFCs are NBFCs primarily engaged in housing finance and regulated by the RBI under the National Housing Bank Act, 1987, and RBI's prudential norms. These companies provide home loans and play a crucial role in India's housing sector.
Revised Public Deposit Limit for Deposit-Taking HFCs
• Earlier Limit: HFCs could accept public deposits up to 3 times their Net Owned Fund (NOF).
• Revised Limit (2024): The ceiling has been reduced to 1.5 times NOF.
• Applicability: This applies to deposit-taking HFCs that comply with prudential norms and have a minimum investment-grade credit rating.
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